"extension of time" in order to raise this money?

[e.h]

Me and my partner have been in an IVA since last October. We are subject to the 50% overtime payment rule. Unfortunately, although we have earned quite a bit of overtime throughout the last year, we have had a number of unforeseen emergencies arise and we have been unable to save up very much of our overtime to give to the IVA Practitioner on the anniversary date in October. Will they be willing to give us an "extension of time" in order to raise this money? If not, what will they do to us? Kind regards

[Adam Davies]

Hi
You should be able to agree a way forward with your IP in this instance,possibly an extension to your IVA or to pay 75% of future overtime.However you would be better,in future,to send off 50% of your overtime to your IP as you earn it.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[iva experts]

Welcome to the Forum e.h,

I would contact your I.P as soon as possible, so an arrangement can be agreed on quickly. This is definitley not the be all and end all, and I am certain that your I.P will come up with a payment plan that you can still afford.

The best thing to do is when you receive your overtime amount to automatically put 50%, so then at you annual meeting you can hand this over.

Best Regards. IVA Experts

[e.h]

Me and my partner have been in an IVA since last October. We are subject to the 50% overtime payment rule. Unfortunately, although we have earned quite a bit of overtime throughout the last year, we have had a number of unforeseen emergencies arise and we have been unable to save up very much of our overtime to give to the IVA Practitioner on the anniversary date in October. Will they be willing to give us an "extension of time" in order to raise this money? If not, what will they do to us? Kind regards

[e.h]

Many thanks to all who replied to my query. I have heeded the advice and have made contact with my IP adviser and am awaiting their call back with some proposals. I have stopped stressing that they are going to declare us bankrupt because of this now!

Thanks again, Regards Liz Herbert

[MelanieGiles]

If I were your IP I would work something out with you Elizabeth, but I would also ensure that I monitored your earnings more carefully in future - my staff ask for wageslips to be produced every quarter to ensure that this cannot happen - and be prepared to provide evidence to your IP of the additional expenditure.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[e.h]

Dear Melanie - thank you for your reply. I have contacted my IP adviser and am awaiting a phone call tomorrow. Whilst we have all good intentions regarding our overtime, when something crops up that needs immediate payment, we have had to dip into our excess funds. It is not a case of us just overspending because we have got a really tight grip on our budget now, it is purely, as I stated, that we have had a few financial emergencies - i.e. we had to have a lot of work done to our car, we had a huge vet bill because our pet insurance would not cover us when our dog was sick, we had to have a new vacuum cleaner, etc. etc. Unfortunately, I do not have paperwork to give to our IP because we didn't think it would be necessary as we thought we would have time to make up the shortfall but lately the overtime has dried up somewhat and now we are in a panic. Hopefully we can come to some arrangement, even if it is extending the length of time of our IVA.

Regards, Liz Herbert

[MelanieGiles]

I do not like this 50% uplift provision, as in my experience it rarely results in any marginal uplift in dividend payment, and causes an awful lot of extra work for my staff in policing. You ought to be allowed to use additional monies earned to cover additional items of expenditure, with a proper review carried out by your IP at the end of each year to increase payments if this is relevant.

Let us know what your IP has to say, Liz.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[e.h]

Thank you Melanie for your prompt response - I will let you know tomorrow what they agree to. I agree with your comment about the annual adjustment, as you must know, IVAs work out very well on paper but in practice, you only have to have one hiccup and then things become very frightening as there is no excess income to cover any emergencies. I am hoping that they will look favourably on us as in all other respects we have complied, we have never missed a payment or been late with a payment and we have dealt with all their requests promptly. Keep your fingers crossed for me. Regards, Liz.

[e.h]

Hi Melanie and Andy. Just wanted to let you both know that I took your advice and contacted our IP. We explained the situation to them and they couldn't have been more helpful ... (well, they could have told us not to worry about it at all, but anyway!!!!) ... and they said that we can either make increased payments until the shortfall has been cleared or we can extend the arrangement until we have covered the shortfall that way. They stressed that they did not want us to worry ourselves over it as it could always be sorted out. So thank you both again for urging us to get in touch with the IP, I was too scared to quite frankly, but I'm glad I did now. Kind regards, Liz Herbert

[MelanieGiles]

Another success story for the forum!!!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Adam Davies]

Hi
Yes indeed !!
Thanks for letting us know the outcome.
regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp